Strategy and objectives

Driven by the desire to pursue responsible development of our business, we have defined an integrated strategy able to combine business growth and financial solidity with the principles of social and environmental sustainability, creating long-term value.

Sustainable growth, enhancement of human capital, reduction of direct and indirect environmental impacts and attention to social issues are the four areas of responsibility in which we have incorporated targets and projects for the responsible development of the group and our stakeholders.

In order to effectively incorporate the four strategic areas in all our activities, we have employed specific group policies.

The Group Sustainability Policy was created with the objective of governing our direct impacts, by identifying the roles, responsibilities and priority sustainability issues. Based on the 10 principles of the Global Compact, the Policy applies to all group companies, by integrating with all other guidelines, procedures, directives and provisions connected with the areas identified.

Combatting corruption

We are committed to carrying out our activities in compliance with the highest ethical standards and we do not tolerate acts of active or passive corruption

Protection of Human Rights

We protect and promote Human Rights in conducting our business activities and in managing relations with stakeholders

Environment and climate change

Our choices are based on guaranteeing compatibility between economic initiative and environmental requirements.

Diversity and inclusion

We believe in the importance of developing the various prospects and experiences through an inclusive culture

Financial health and inclusion

We believe in the importance of developing the various prospects and experiences through an inclusive culture

The Group ESG Policy was drafted with the objective of effectively managing our indirect socio-environmental impacts, thanks to the integration of environmental, social and governance (ESG) criteria in our financing, investing and advisory model.

We want to build a responsible business, that integrates sustainability principles and objectives in all business activities. Policies and objectives, governance system, dialogue with stakeholders and adhesion to the Global Agenda form the basis of our commitment. In line with this commitment, we have defined some qualitative and quantitative objectives being set in the Strategic Plan 2023-2026 guidelines and included in the staff performance evaluation and remuneration policies for the Group’s entire corporate population and senior management in particular.

The targets identified, involve the following main topics:

Environmental

• Net Zero financed emissions by 2050
  • 35% financed emissions intensity by 2030 (-18% by 2026))
  • Interim sector targets for Net Zero Banking Alliance released by 2024¹
• Phase-out from coal by 2030²
• Carbon neutrality on own emissions
• 100% renewable energy at Group leve
• Incorporating more “Climate & Environment” metrics into risk management processes such as RAF, ICAAP and Stress testing
• At least 2 Sustainability bond issues

^{1) No exposure to coal mining and agriculture. Four sector targets published by September 2023 (Automotive and Power already published; Cement and Aviation will be added). The remaining NZBA sectors will be disclosed by September 2024
2) In CIB lending (excluding Specialty Finance) and proprietary investment portfolio in all markets}

 

Social

• >30% female members of MB Key Function Holders3
•  >20% female executives
•  >50% women out of total hires
• Parity in advancement rate
• 100% employees trained in ESG
• >€20m support to projects with social and environmental impact
• Stop lending to/investing in tobacco2
• 70% of procurement spending screened using ESG criteria

^{2) In CIB lending (excluding Specialty Finance) and proprietary investment portfolio in all markets
3) Key Function Holders: Group senior management}

 

Governance

• Long-Term Incentive Plan featuring::
  • 50%  of total variable compensation (vs previous @20%) for Group CEO and General Manager delivered all in equity
  • Extended to include other key Group strategic resources
  • 20% assigned to ESG KPI weighting⁴
• Launch of the first Employee Share Ownership Plan to foster engagement and ownership at all levels
• Full adoption of Tax Control Framework for all the Group Italian banks

^{4) Two proposed KPIs to be included in the 2026 LTI: % of female executives; reduction in financed emissions intensity}

 

The Plan objectives will be pursued by offering solutions, products and advisory services to support clients in the transition towards a sustainable economy, helped by training programmes and awareness-raising campaigns to promote increased sensitivity to ESG topics both within and outside the Group.

	OBJECTIVES TO 2026	30/06/24
	35% financed emissions intensity (tCO2/M€) by 2030 (-18% by 20261)	-9.8%
	All interim sector targets for NZBA	All NZBA sector targets set
	Carbon neutrality on own emissions2	Carbon neutrality confirmed
	100% renewable energy at Group level	100% at Group level
	Phase-out from coal by 20303	New ESG Policy broadening the perimeter to all lending portfolios
	Incorporating more “Climate & Environment” metrics into risk management processes such as RAF, ICAAP and Stress testing	Ongoing

	>30% female members of MB Key Function Holders4 >20% female executives >50% women out of total hires Parity in advancement rate	20% 20.2% 39.6% 18% women vs 16% men
	100% employees trained in ESG	84%
	>€20million5 support to projects with social and environmental impact	> €7 million
	Phase-out from tobacco by June 20263	New ESG Policy approved broadening the perimeter to all lending portfolios
	70% of procurement expenses screened with ESG criteria	65%
	At least 2 Sustainability bond issuances	1 issuance (€500m Sustainability SNP in September 2023)

	New Long-Term Incentive Plan featuring: 50% of total variable compensation for Group CEO and GM LTI perimeter broadening 20% ESG KPIs weight in LTI	Approved in October 2023. ESG KPIs related to: % of female executives Reduction in finance emissions intensity
	Launch of the first Employee Share Ownership Plan to incentivize engagement and ownership at all levels	Launched
	Full adoption of Tax Control Framework for all the Group Italian banks	Tax Control Framework full adoption

<sup>1. In the CIB loan book, excluding Specialty Finance, vs 01/01/2023 emissions intensity (tCO2/M€). Because of the possible volatility that could derive from the gradual inclusion of Scope 3 category 11 “Use of sold products” in counterparties’ disclosures, it has been decided to exclude this impact from the calculation of emissions financed for the scope being analysed. This decision has been made only for those sectors defined as “enabling” the energy transition by Regulation (EU) no. 2020/852 (the “Taxonomy Regulation”), so as not to penalize those counterparties that contribute to the climate change objectives. However, the exclusion has not been applied to the sectors covered by the Net-Zero Banking Alliance objective.
2. Includes Scope 1 and Scope 2 market-based emissions.
3. In CIB lending (excluding Specialty Finance) and proprietary investment portfolio in all markets.
4. Key Function Holders: Group top management.
5. >€20million cumulated by 2026
6. % of ESG qualified funds (SFDR Articles 8&9 funds) out of total funds in clients’ portfolio
7. Number of ESG qualified funds (SFDR Articles 8&9 funds) manufactured by the Group Asset Managers.
8. Calculated over the 1 July 2023- 30 June 2026 period.</sup>